A contract for the purchase of horses with instalments or a lease-to-buy contract may contain a clause stating that the buyer has a warranty right over the horse in order to ensure payment of the purchase price. The seller would have a security right to enforce its rights against the security rights (the horse) if the debtor is in arrears with the obligation. For example, such a clause will protect the seller if the buyer has stopped paying, if the seller repossesses the horse, or if the horse has been injured, fallen ill or dies before the buyer has made a final payment. The agreement itself may constitute the guarantee agreement and a quote may then be required in accordance with the Single Commercial Code and legal requirements. Before entering into this type of agreement, here are six points you should consider. .